City needs to come up with nearly $300K or possibly lose the hotel

TRENTON — City officials have 10 days to pony up $295,000 or Trenton’s only hotel faces closure.

At Tuesday’s council meeting, an attorney for the Lafayette Yard Community Development Corporation, which oversees the Trenton Marriott, said he received a letter from the current management group, Waterford Hotel Group, threatening to close the doors if the money requested is not there by 11:59 p.m. March 15.

Waterford is asking for the funds because the current reserve balance of the hotel, which opened in 2002, is below $200,000. The city is under contract to answer a cash call when this happens.

The Marriott and Waterford are already pulling out of the city location by June, but the money requested will pay mostly overdue bills. If council doesn’t act, Waterford will terminate the agreement early.

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“The consequences are The Marriott immediately pulls its flag,” LYCDC attorney Rocky L. Peterson said, adding workers of the hotel will also be immediately terminated. “The important issue is the hotel goes dark immediately.”

Nearly 40 percent of the money demanded from Waterford, $116,575, is owed to the Trenton Parking Authority.

The hotel collects the overnight guest parking fees and reconciles the money with the parking authority, a representative from Waterford said at Tuesday’s meeting.

In a Feb. 13 bill — obtained by The Trentonian — the hotel owed more than $170,000 to the parking authority, with $86,511 past due by 90 days.

“We’re short,” a Waterford representative told council as a reason for the delayed payment. “We owe more than we have.”

Walter Drew Smith, the parking authority’s chief operating officer, said Tuesday afternoon that the amount due is not hindering operations.

“I would like to collect every dollar owed,” Smith said. “Though, at the same time, it’s very important that we keep the hotel running.”

The 197-room hotel is also plagued with approximately $30 million in debt, which includes a $14 million city bond, a combined $9 million in state loans and more than $7.3 million owed in a note to the Trenton Parking Authority.

A possible rescuer of the hotel has also emerged.

Salisbury, Md.-based Marshall Hotels & Resorts, which would succeed Waterford, is proposing bringing the Wyndham Hotel Group as the new franchisor.

Representatives gave a presentation of their plan to help save the hotel.